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Exercise 25-13A Internal rate of return LO P4 Following is information on two alternative investments being considered by Tiger Co. The company requires a 5% return from its investments.    Project X1 Project X2 Initial investment   $ (102,000 )     $ (164,000 )   Expected net cash flows in year:                     1     36,000         76,500     2     46,500         66,500     3     71,500         56,500        Compute the internal rate of return for each of the projects using excel functions and based on internal rate of return, indicate whether each project is acceptable. (Round your answers to 2 decimal places.)

Exercise 25-13A Internal rate of return LO P4 Following is information on two alternative investments being considered by Tiger Co. The company requires a 5% return from its investments.    Project X1 Project X2 Initial investment   $ (102,000 )     $ (164,000 )   Expected net cash flows in year:                     1     36,000         76,500     2     46,500         66,500     3     71,500         56,500        Compute the internal rate of return for each of the projects using excel functions and based on internal rate of return, indicate whether each project is acceptable. (Round your answers to 2 decimal places.)

Accounting (Text Only)
Accounting (Text Only)
26th Edition
ISBN:9781285743615
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter26: Capital Investment Analysis
Section: Chapter Questions
Problem 26.1APR: Average rate of return method, net present value method, and analysis for a service company The...
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Exercise 25-13A Internal rate of return LO P4

Following is information on two alternative investments being considered by Tiger Co. The company requires a 5% return from its investments.
 

  Project X1 Project X2
Initial investment   $ (102,000 )     $ (164,000 )  
Expected net cash flows in year:                    
1     36,000         76,500    
2     46,500         66,500    
3     71,500         56,500    
 

 
Compute the internal rate of return for each of the projects using excel functions and based on internal rate of return, indicate whether each project is acceptable. (Round your answers to 2 decimal places.)
 

 

 

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